Chinese households are earning more but saving less, according to Credit Suisse.
Based on the Bank’s latest proprietary China Consumer Survey, household income of the bottom 20% of those surveyed has risen by 50% since 2004, while the top 10% has grown 255% to around RMB34,000 per month.
The savings rate has dropped from 26% to 12% during the same period. Credit Suisse expects China’s share of global consumption to increase from 5.2% at US$1.72 trillion in 2009 to 23.1% at US$15.94 trillion in 2020, overtaking the US as the largest consumer market in the world.
6 observations from credit suisse survey
- The rich have become richer
- The poor and the middle classes are still much better off
- Chinese are saving less
- There are more people living in rented property and property bought in the market, while the percentages of inherited and employer allocated housing have declined
- Car ownership is rising
- Consumer confidence in domestic brands is generally rising.
